Nifty and Bank Nifty index continued to trade on sideways. Metal index was again the star performer of the session and continued to perform on a higher note. Now, 33500 is major resistance for Bank Nifty, a sustainable move beyond this resistance will decide the strength of the bulls in the upcoming session.
Dalal Street Summary
Market breadth was strong today throughout the day. Domestic Equity indices extended gains to the 4th trading session on Monday.
Nifty 50 ended near 14,950 level. All sectoral indices on the NSE ended in the green. All the other sectoral indices ended in the green with the metal index adding 3 percent, while capital goods, power, and healthcare indices rose 2 percent each.
Best Sector:- Nifty Metal, +3.14% Biggest gainer :- Coal India ,148.10 or 8.22%.
Coal India Ltd is quoting at Rs 144.25, up 5.41% on the day as on the NSE. The stock is up 12.3% in the last year as compared to a 61.85% jump in NIFTY and a 223.31% jump in the Nifty Metal. Coal India Ltd is up for a fifth straight session today.
As per the provisional closing data, the S&P BSE Sensex, rose 295.94 points or 0.6% to 49,502.50. The Nifty 50 index rallied 119.2 points or 0.8% at 14,942.65. Bank Nifty gained 237.90 or 0.72%. S&P BSE Mid-Cap index added 0.97% while the S&P BSE Small-Cap index rose 0.94%.
More than 300 stocks including Tata Steel, Wipro, and Sun Pharma hit a fresh 52-week high on the BSE.
On BSE, 2,079 shares rose and 1027 shares fell. A total of 224 shares were unchanged.
Stocks to keep an eye on : Today Aarti Industries, Godrej Consumer and Granules will publish their quarterly results. So keep an eye on those stocks and play safe with levels. To read technical view on same – Click here!
Traders can keep Asian Paints (Cash – LTP 2556.95) in their watch list for today. Asian Paints has strong support zone near 2490–2480, so buy this counter on dip near 2535–2525 zone. Keep SL below 2480 for immediate target of 2595–2615 and then 2640++ in 2-3 days.
Technical View on Nifty and Bank Nifty
Nifty continued its positive traction on Monday. Index struggled to capitalize on the move beyond the key 15,000 psychological marks. From a technical perspective, the recent strong rebound from the near-term support level of 14400 stalled near a technically significant resistance around the 15000 marks. Repeated failure near the mentioned handle constitutes the formation of a bearish multi-top. The formation however is not confirmed until the important support level is broken.
Bulls might wait for a sustained move beyond the multiple tops barrier near the 15000 mark before positioning for any further appreciating move. The next relevant resistance is pegged near the 15180 regions.
Nifty Futures strategy for the day
Resistance comes at 15055 and support lays down at 14890.
Strategy – Fresh sell below 14890 for the target of 14800—14750 or else it could test its resistance level of 15055—15180 on the upside.
Bank Nifty stayed range-bound and choppy. Selling pressure from higher levels can be seen on the charts. On the top side 33500 and 33000 on the downside could be the key levels to watch out for. There are some downside risks for the index because of the Covid outbreaks. Banking stocks continued to track broader bullish markets, heavyweights stocks trying to keep the index on the upside.
Nifty Bank Futures strategy for the day
Resistance at 33500 and Support at 32800.
Strategy – Either buy above 33500 for the target of 34000—34400 or Sell below 32800 for the downside target of 32000.
Top Stocks Recommendations (8th May 2021)
Mahindra Logistics, stock has been bottomed out and showing buying strength from lower levels. Traders are advised to do buying around 550 levels for the upside target of 570 and then to 590 levels in the days to come.
Support and stop-loss remain at 527 levels on a closing basis.
TATA STEEL (Futures)
The stock has formed a bullish candle on the daily chart. Traders can buy the stock around 1225 for an upside move till 1310 and then to 1340 levels in days to come.
Support and stop loss below 1160 on a closing basis. Trade with the levels only.
Traders can trade safely in Nifty, Bank Nifty and Stock Specific with levels only. To get real time Dalal Street news, updates and recommendations on your WhatsApp. Click on the banner given below and fill your details.
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